Oil price sees fall over European economy fears

The price of oil headed for one of its biggest weekly falls in the past three months in New York due to concerns over the Greek debt crisis.

Crude dropped 4.8 per cent this week after Luxembourg’s Jean-Claude Juncker, who is leading the euro area group of finance minister said in a newspaper interview that Greece faces “an extremely difficult process” to resolve its economic difficulties.

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Futures also fell 0.8 per cent as the markets waited to see what will happen with Greece and its impact on European economies.

Crude for July delivery dropped by as much as 78 cents in trading in New York to $94.17 a barrel.

National Australia Bank minerals and energy economist Ben Westmore said: “We expect the recovery to be sustainable, but at the moment things look a little soft. Everyone is waiting to see what happens in Greece.”

Brent crude for August delivery dropped 67 cents to $113.35 per barrel on the London ICE Futures Europe exchange.